Mitie today said it has agreed to sell its document management business to Swiss Post Solutions (SPS) for £40m.
Mitie Document Management pulled in revenue of £48m and earnings before interest, tax, depreciation and amortisation of £4.2m in the year to the end of March.
The FTSE outsourcing group, which operates cleaning and security for the Covid testing system, said it had agreed the deal on a debt-free, cash-free basis.
The sale reflects Mitie’s efforts to offload non-core businesses as it looks to pump cash into higher-growth business areas following the pandemic.
Earlier this month the company bolstered its telecoms capabilities with the acquisition of DAEL’s UK operations.
Mitie said document management services would remain a key part of its integrated facilities management offering to its clients through a preferred supplier partnership with SPS.
The deal will also boost Zurich-based SPS’s efforts to grow its document logistics and business process services divisions in the UK and Ireland.
“By joining forces with Swiss Post Solutions, the Document Management business will continue to grow and flourish, allowing Mitie to focus on our technology-led, Science of Service strategy in our core divisions,” said Mitie chief executive Phil Bentley.
“I would like to thank the Document Management team for their contribution to the Group, and we look forward to working with SPS to bring new innovation to our existing and future IFM clients.”
The merger is subject to a consultation process with staff and is expected to complete by the end of September.